When your student loan lands in your bank account, it feels like a lot of money, doesn’t it? However, after paying your monthly rent, restocking the fridge, getting a round of drinks in at the bar, and treating yourself to a few new wardrobe staples – it soon disappears. Even more so with today’s rising inflation rates!
Wondering what inflation is and how it will affect you whilst you’re at university? Let the team at CARO Lettings explain.
What is inflation?
Inflation is the term used to describe the increase in prices over time, and how quickly those prices go up is what’s known as the rate of inflation.
It affects consumers’ buying power and has an impact on everything from the cost of train tickets to food, drink, and clothing.
To put this into perspective, if a loaf of bread cost £1 last year and is now £1.05, one year on, this is an annual inflation rate of 5%.
According to the Bank of England, prices are rising by 7% every year in the UK, which is the highest rate in 30 years. They’ve warned that this could reach 10% in the next couple of months, as the price of fuel and food puts even more pressure on people’s budgets.
Why is inflation so high?
Rising fuel costs have been one of the biggest contributors to the increase in inflation, with petrol prices going up by 12.6p per litre between February and March alone.
Higher energy prices have also driven the inflation rate. This came as a result of the demand for electricity and gas growing, due to businesses reopening after the pandemic and the UK’s chilly temperatures making it incredibly difficult for us to turn off the central heating.
Rail fares have gone up by 3.8% in England and Wales. This is the highest they’ve been in over 9 years and has a profound impact on students who don’t drive or take their car to uni with them.
Though not something that will affect you directly as a university student, higher interest rates make mortgage payments more expensive for homeowners. This means that, if you live in private housing or student accommodation, your monthly rent may go up to cover the landlord’s extra costs.
What students can do to save money
There’s not a lot we can do about the rising rate of inflation, but there are a number of things that will help you to manage your money better.
Here are just a few of them:
- Set a budget – you may find that, with the cost of living increasing, you’ll have to tighten your belt a little more than in previous years. However, there is a simple solution…
As soon as you get your student loan, calculate how much you’ll need for the rent, bills (if they’re not included), food, books, travel, petrol, etc. This will tell you how much you have spare and prevent you from splurging it all at once!
- Invest in a 16-25 railcard – planning on travelling back home at weekends to visit friends and family? With fuel costing more than ever before, you’ll probably opt to leave your car at home – especially if you go to uni far away. So, why not catch the train?
Though it will cost you £30 per year, a student railcard is one of the best purchases you’ll make whilst studying at uni – saving you up to a third on train tickets!
- Shop savvier – whether it be for food, books, booze, or clothes, it helps if you write a list before you head to the shop or order online – and always use price comparison tools to find the cheapest price.
If you’re doing the weekly shop, never go on an empty stomach. You’ll only end up buying more food than necessary! Whatever you’re shopping for, check if you can use your student discount to get some money off, or keep an eye out for promotional events and discount codes.
- Don’t be lazy – after a hectic day at uni, the temptation of having a takeaway delivered to your student accommodation is real. But it works out much more affordable to cook something from scratch in your shared kitchen.
If you’re going on a night out in town with your mates or running late for a lecture, you may contemplate booking a taxi or hopping on the bus. However, it’s much cheaper – and better for your health and the environment – to walk or cycle. Failing that, if you and your housemates are all heading in the same direction, suggest car sharing.
- Choose student accommodation wisely – you have several options when it comes to student accommodation, from student halls to privately-owned halls and private housing.
We can’t speak for all accommodation providers, but here at CARO Lettings, we have frozen our prices to help students save money – making our student accommodation in Liverpool more affordable than our nearest competitors.
Want to know more?
At CARO Lettings, we pride ourselves on offering modern student accommodation in Liverpool that’s kind to students’ pockets.
All our buildings are within easy reach of Liverpool Uni, John Moores, and Hope. Plus, you’ll only be a heartbeat from all the action in the city – perfect for when you’re celebrating something special or catching up with friends.
To find out more about the cost of our student accommodation or the facilities on offer, don’t hesitate to get in touch with us on 0151 318 4743.